Audits and Internal Controls

In order to meet our social responsibilities as a business, the Nitto Group has independent divisions performing internal audits, which are useful for achieving effective internal controls and management objectives, under a system of checks and balances.

Audits (Internal Audits)
In an effort to contribute to improvements in business operations and performance, internal audits are performed to ensure that management activities are being performed accurately, legitimately, and reasonably by all of the companies within the Nitto Group. In addition, QES audits intended for quality, environmental and safety purposes are also conducted in order to ensure the safety of employees, customers and society. External evaluation are also conducted periodically.

Internal Controls
Basic Policies Related to Internal Controls have been created to ensure suitable business practices. “Internal Controls Over Financial Reporting” have also been developed in an effort to ensure the appropriate maintenance and operation of the control environment, risk evaluation and response, control activities, information and transmission, monitoring, and handling of information technology.

Basic Policies Related to Internal Controls
In accordance with Article 362 of the Companies Act and Article 100 of the Ordinance for Enforcement of the Companies Act, we have established the Basic Policies Related to Internal Controls. Click here for the details.

Internal Controls Over Financial Reporting
Nitto complies with the generally accepted evaluation standards of internal controls over financial reporting based on the requirements of the Financial Instruments and Exchange Act. Documentation and self-evaluation of internal controls are performed at bases targeted for evaluation within the Nitto Group, while an internal controls & audit department monitors self-evaluation results from an independent perspective.

In addition, the Internal Control Committee (consisting of the President, Chief Financial Officer [CFO], heads of each operating entity, etc.) has been established as an organization to deliberate on the effectiveness of internal controls throughout the entire Group. Final evaluation is performed by managers who take those deliberation results into account and sign the internal controls report (President and CFO).